The Australian cloud infrastructure-as-a-service (IaaS) market reached $393 million in 2017, representing a 32.5 per cent growth from 2016.

According to research firm Gartner, the global cloud IaaS market reached US$23.5 billion in 2017, a 29.5 per cent growth from US$18.2 billion the year previous.

Amazon remained the ahead of the pack with 51.8 per cent of the market share, with the tech giant's IaaS revenue up 25 per cent. However the vendor's market share is slightly lower than in 2016 when the business had 53.7 per cent of the spend.

Amazon’s growth in 2017 was driven not only by customers that are migrating from traditional data centres to cloud IaaS, but also by businesses implementing transformational digital business projects, reflecting its broad range of use cases.

Unsurprisingly, Microsoft followed Amazon in the second spot, currently holds 13.3 per cent of the market share with revenues of US$3.1 billion.

Alibaba claims the third spot with 4.6 per cent of the market share and revenues of US$1.09 billion, with Google following with 3.3 per cent of market share and revenues of US$ 780 million.

"The top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organisations and as cloud availability expands into new regions and countries," said Sid Nag research director at Gartner.

"Cloud-directed IT spending now constitutes more than 20 per cent of the total IT budget for organisations using cloud. Many of these organisations are now using cloud to support production environments and business-critical operations."

In the IaaS market, the competitive landscape is consolidating around the leaders, according to Gartner.

The top four providers — Amazon, Microsoft, Alibaba and Google — are all hyperscale IaaS providers and represent approximately 73 per cent of the total IaaS market and 47 per cent of the combined IaaS and infrastructure utility services market.

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